tv Bloomberg West Bloomberg April 9, 2015 1:00pm-2:01pm EDT
cory: live from pier three in san francisco, welcome to "bloomberg west," where we focus on innovation, technology, and the future of business. great finance minister yanis varoufakis says he is confident that greece will reach an agreement with its creditors to unlock a bailout fund. he says greek is not pushing to russia for help despite a meeting between him and resident -- vladimir putin. >> we should be very clear on this. our financial woes are bailout fallout needs to be done with within the european public.
this government is not seeking some extra european solution to what is a european problem. cory: grace, meanwhile has named the $495 million loan payment to the imf which was once in question. they have also increased the emergency funding available to greek banks. the news from greece helped to propel banks today. the stock 600 index of 1.1% to an all-time high. investors hoping the quantitative easing program will boost the european economy. meanwhile, a new report out of germany showed production recovered in january. intel's potential purchase of its fellow chipmaker altera is off. talks have ended. people familiar say altera rejected the offer of $54 a share and will be looking for new growth as it faces a slowdown in the pc market. hbo passed new standalone web
channel has gone live today on dish tv's sling tv service. "game of thrones" premiere is expected to provide another heavy day of outages. here is the sling tv ceo on dealing with all that demand. >> the fundamental way the internet is architected was not really meant for video. companies like us and others are always working to improve the way you deliver video over the internet. in particular, live video. live is a lot more cap located in on demand video. cory: he attributed the outage to the high number of people signing up for the service. management changes at the zynga. the social media company, gaming company has struggled to adapt to a world no longer obsessed with farmville and mafia wars. mark pincus returning as ceo. don mattrick out after 21 months at the helm. zynga rocketed on the scene in
2007 with several games on the facebook platform but the company capitalize on that promise with a frothy ipo that values zynga at $7 billion. now it is valued at $2 billion. sales tumbling 21% in the last year. last year, they lost $226 million in just one month. shareholders are losing even more money. shares are down on the news of pincus' return. rich greenfield is with us. this raises interesting issues about whether a founder is better, or a professional manager? >> they are better depending on the time the company is in. it is not a bad thing to have change in a company in this much trouble. pincus is an inspired leader. whether he can tune his inspiration so to speak to suit the times that zynga is in is a tough question because not only does it need to revive the production of being hit games
and continued immigration to mobile, but it has to slim down further and become a more efficient company. he is a visionary entrepreneur, not an operating genius. cory: visionary entrepreneur, his most creative vision seemed to be in the accounting tricks they used in the ipo to change the revenue recognition. rich greenfield, you called for this. you said matrix was not working and zynga. >> i want to give you a live update, that i am literally on sling tv right now watching hbo and looks beautiful. it looks like it is working great. cory: i thought you were going to say you were going to say you are playing mafia wars still. what was different under the mat trick years? >> we believed don mattrick
needed to be terminated by the board. he made some very key mistakes in terms of reengineering the poker game, making it glossy but ruining a lot of the player functionality. people valley speed and ease of use on their mobile devices, and not really understanding mobile. he is not a mobile guy. he came from the console world. i just think he was the wrong person to lead zynga into the mobile world that we now live in . on top of that, if you go back over his couple of years there every six months, the strategy was changing. ultimately could he have gotten a game that worked? it's possible, but we have a rapidly shifting strategy. profitability targets never seemed to actually get hit. one of their most important franchises from the very beginning of the company, poker, damaged. all of that made it hard to believe he was the right person. the question now is, we know he was wrong. is marc coming back to right
thing? cory: i wonder, david, when we look at this company, maybe this was not mattrick. if you are looking at the founder and ceo still hanging around, he is making about the corner office and will ultimately take over. do we know it in changing directions was him fighting against the founder and maybe some of those decisions were not on mattrick's back? >> he has stayed on as chairman of the board so what has gone on has been his responsibility as well. it is funny how reflexively we can say they have to move to mobile. nothing is simple integrity days because the pace of change is so rapid. the hottest thing in gaming right now is "league of legends." it is a completely difficult to model, so who knows what they
should do? i just know that someone who is used to producing studio games for mobile is probably not going to be successful. cory: it is worth noting that don mattrick, while he was there, he really cleaned up. he made a boatload of money come even though some of it was in incentive grants. >> it is also important to note when mark pincus was last ceo he was able to sell stock at $12, got an early exit out of the ipo lockup. cory: with accounting health as well. richard david, thank you very much. "bloomberg west" is next with sir richard branson in just a little bit. ♪
of million-dollar businesses. richard branson on what education means for entrepreneurs. j.p. morgan chase ceo jamie dimon says last october's volatility of the u.s. treasury market was not supposed to happen except for every 3 billion years. he says the fluctuation of treasury yields by almost .4% was unprecedented and would've had serious consequences in a stressed environment. bill ackman's pershing square allegan, and valiant pharmaceuticals have agreed to end their long-standing battle over a failed agreement. valiant accused allergan of making false statements. allergan has since been purchased by activists. sir richard branson, one of the wealthiest entrepreneurs in the world, also a high school dropout. he is not alone. other successful entrepreneurs
include larry ellison, bill gates, steve jobs. i caught up with branson last night in arizona. we had a long talk and talked about the challenges of educating entrepreneurs as well as the future of virgin galactic. richard: it is possible school is not necessary. i left school at 15 and i learned the art of entrepreneurialism by getting out there and doing it. i also educated myself in the real world. i have seen my life as one lung education that i never had -- long education that i never had. but that is for entrepreneurs. for a lot of other professions, it can be quite useful. universities can be quite useful.
but for most entrepreneurs, the sooner they get out there and get their hands dirty, the better. cory: we see a lot of innovation around integration -- education technology being applied. i wonder about the role the individual has in that. a lot of entrepreneurs were not really good students. what is it about that? >> i think an entrepreneur is someone who wants to change things, create things does not want to be put in a box. schools are there to educate the masses, i think. entrepreneurs rebel against that. if you have a good idea that you feel can make a difference in other people's lives i suspect you would be better off not building up a big debt of student debt, but getting out
there and giving it a go. the danger in it is if you fail, you don't have an education to fall back on, a degree to fall back on but you will have had a pretty good education in trying to set up and run a business. you just have to pick yourself up and try again. cory: you have talked a lot about your difficulties in school dyslexia, what that meant for you in terms of troubles in school but maybe helping your business career? richard: i am dyslexic, and therefore, i think i've been very good at keeping things simple. as a dyslexic, i need things to be simple for myself. therefore virgin, i think, when we launched the financial service company or a bank, we do not use jargon. everything is very clear-cut and simple. i think people have an affinity to the virgin brand because we do not talk about them or down to them.
-- above them or down to them. what was the other thing? cory: when you talk about new ideas do you think you do that in a different way where you use your dyslexia in terms of vetting new ideas? richard: the other thing i was speaking about is delegation. if you have a learning disability you become a very good delegator. you know what your weaknesses are and you know what your strengths are and you make sure you find great people to step in and deal with your weaknesses. whether you are dyslexic or not, delegation is such an important thing for a good leader to be good at doing. too many leaders want to cling onto everything themselves and do everything themselves and never let go. therefore, they never grow a
group of companies like virgin. cory: another thing emerging at this conference is not just what happens when people are in school but this career development and launching them into a place where they can get jobs and their resumes will put them on the right career path. you started so many different kinds of businesses. who do you look to hire, what does a resume look like for someone you want to hire? what are the kinds of strength that you look for when hiring someone? richard: personally, i do not look at how many a's they had or what their academic career was. i look more at what experiences they have had in life, what kind of person they are. if they are going to go into leadership positions, will they be good with people will they be good and motivating people will they look for the best in people?
so it is more that kind of area rather than their academic abilities. having said that, when you build rockets, we would like a rocket scientist. cory: when is the latest with virgin galactic. you have that tragedy with a test flight. what is the latest in the what is the timetable? richard: i was in the mojave desert this morning, met the wonderful 500 people working there. they are working literally day and night getting the next station finished. and they are confident they are back on track. it will be about a year delay. but i still believe virgin galactic has a great future and that we are going to deliver. cory: you still plan on being on
here in san francisco. >> second season is the story of what happens to a company after the bell of the ball, it is a hit, and then they are going to the next level. series a financing and all the good and bad things that can happen. >> the wink of us twins make a cameo, evan spiegel. >> this is true. >> everyone wants to know, is there a good dick joke in a series? >> there is at least one. >> is it as worthy as the one in season one? >> we love our babies. it is not for us to say which did joke is better than the others. >> that is probably one of the most talked about moments of season one and it is indicative of how you put it together.
it is technically correct. i know you have done a lot of research on the technical part of things. tell me actually about how that came to be. >> when mike and i first started talking about the show, we bonded over the fact when we started talking about technically incorrect dick jo kes. we doubt that if we were going to do them, they would be technically correct. they may not be funny but would be technically correct. >> and mike, you are an engineer. you work in silicon valley once upon a time yourself. so you know a little bit about this world. >> i had fun on that one. believe it or not, this guy who has his phd -- after we finished season one, was our compression consultant. we asked him for that dick joke. we asked for something to get put on the board. we ask a lot of technical things
. he kind of went to town on this. that came about -- early on when we started, i thought it would be cool to have a beautiful mind moment, the men and women in the bar leading him to does mathematical epiphany. i thought maybe we should have something like that with compression, so we were looking for something dumb. one of the writers he was just completely separately talking about discussions with his roommates -- i don't know when you can say on the show. manipulate. alec overheard this and said, i think we have got it. >> that was my own personal beautiful mind moment.
>> i just got spit on. >> i'm sorry. >> i'm good. very meta. really, you guys do a lot of research for the show. i know you come up here often. tell me a little bit about that. >> a lot of our stories come from real stories appear. when alec started, we both had this desire to dig in and find out more about the real world, when these people really do. we were sitting there after the pilot when it went to series. it just kept occurring to us, i don't know what the people are doing. i used to program a little bit, but i was not building apps, platforms, i was doing another kind of test engineering thing.
the more we dug into it the more great stuff we found. >> the hot show's use to be about doctors and lawyers. why write about silicon valley and computer geek's now? >> we ask ourselves that on a daily basis. why do we do a show about people that sit and type all day? what they do literally 16 hours a day is inherently unfilmable. >> unglamorous, unfunny. >> but it could not be more relevant. you look at the speed in which tech is moving and the role that it plays in our lives. everybody has at least one mobile device on at all times. it is super relevant to everybody's life and you do not see that much about how that stuff comes to be. cory: emily chang. hip-hop legends de la soul on
cory: this is "bloomberg west" and i'm cory johnson. a number of americans falling for an employment benefits is at a 15-year low. claims average 282 thousand week over the past month, the lowest level since 2000. he consumer confidence rose to its highest americans falling for an employment benefits is at a 15-year low. claims mark since may 2007. will the european union politicians drive greece out of the euro area? french economists say that is a real risk. >> i think they are mistreating
the greeks in south-central europe but i think they are also mistreating themselves. the eurozone, as a rule, is not doing well. even in germany, the growth is less than outside of the eurozone and the u.s.. cory: greece is currently negotiating with european officials and the imf on the terms of a bailout. imf managing director christine lagarde said that they could be in for a bumpy ride as they meet in washington at the world bank. >> overall, we would say macro economic risks have decreased. so the global recovery continues , but it is moderate and uneven. cory: she says the global economic risks have decelerated over the last six months but
threat to the world financial system have risen. french tv stations have been shut down by hackers who claim allegiance to islamic state. tv 5 monde has been off the air since wednesday night. a message in support of the islamic state was posted on their homepage in french, english, and arabic. france's national security agency is working with them to restore operations. an indian court sentenced the founder of a computer company to seven years in prison after finding him guilty of india's biggest ever corporate fraud. he admitted to inflating the software company's assets by about a billion dollars in 2009, triggering an 89% decline in the share price. after the scan was discovered nine others including the company's former chief an answer -- financial officer were also found guilty. a world where we can get closer
cory: let's get a check on bloomberg top headlines. walgreens will close 200 of its more than 8000 drugstores in the u.s. the company will also reorganize corporate and field offices. the move will help the company cut $500 million in cost they hope, by the end of fiscal year 2017. microsoft filed a reply brief to its ongoing battle with the government over access to customer e-mail with the data stored in ireland. microsoft says the court should honor well-established precedents that limits its reach
beyond u.s. borders. >> when you create an e-mail, it is yours, you own it, you should control it. if the government wants it, they should have to follow the law, just as companies who have control of your e-mail in their servers, we need to respect your rights as well. cory: microsoft called on congress to update electronic privacy laws. the current standards are 29 years old. retailers targeting older shoppers instead of looking and broke millenials. according to firms, the bulk of consumer spending has shifted from those younger than 45 to those 45 and older. maybe the quietest hurricane season in a decade for the atlantic ocean. forecasters predicting just seven storms compared to the average of 12. cooler weather in the atlantic and an el nino in the pacific.
in this edition of wiring the world, we will look at how to de-wire your world. imagine not having to plug in your phone to charge it. the company's breaking through with wireless charging. >> check this out. welcome to the world of wireless charging where power is transmitted through the air. soon we can all get rid of our power cords. no wires. it is not magic but magnetic resonance. >> all the work happens here. >> alex explains. he is the ceo of witricity. >> get rid of these power cords. we carry around cords to charge up our phones, we have these big, nasty adapters and tables to power our notebooks.
we are going to just get rid of them. >> those cores replaced by magnetic coils inside of our gadgets at the cost of just a few bucks. >> witricity demo transmitter and receiver explain. when it powers up, it energizes. several devices can be charged as fast as they are plugged in. >> these magnetic waves do not really interact with the human body at all. in fact, you probably would get a bigger dose of these magnetic waves from using a hairdryer. you can do it through the head. >> i am not getting fried, you are sure? >> positive. [laughter] >> this is a wireless desktop. there is a power source that has been built underneath. we bring the laptop in, the charging indicator goes on. we have built a source into the console so it is as simple as
putting the phone in the console and it begins to charge. in the system, there is a transmitting coil in this black had here. this would be on the floor of your garage. a receiving coil that would go on the bottom side of your vehicle. you would drive into your garage and then it would turn on. >> in fact, to unit aims to bring one of the first wirelessly charging consumer products, a car, to market by 2016. the company is one of several investors including taiwan tech giant foxconn, and others including intel. >> our first focus is to look at a no wires future. >> the semiconductor maker says it will debut a wirelessly charging pc-type of device later this year, followed by partnerships. >> start deploying wireless
charging at hotels, at the lounges in the airport. >> all leading to that big question for witricity. when will all of this be reality? >> within five years. >> as the internet of things grows, the need to power everything does as well, and this could be the answer with wireless power. cory: that is really cool stuff. is this different than the ones already on the market where you plug something into your phone you can charge at your desk? >> it is different because you still have to plug in those gadgets, but this, you don't have to do anything. you just have to hold it over a field and just let it sit there. pretty easy. cory: what is their rollout plan, how many devices will they be in in in your future? >> he did not have that. he is working with other companies.
now you are seeing intel. they are still ironing that out but over the next year he said maybe 2015 could be the start of the era of wireless charging. if you look at some forecast out there, one specifically by ihs we are set to see an explosion in revenue happening in the wireless charging industry and by the year 2019, it could double in revenue from about half $1 billion to a full billion dollars. wait and see over the next few years. cory: cool technology whether this is the winner or not. thank you. "bloomberg west" will be right back with de la soul. ♪
cory: 25 years ago, de la soul changed the music world with hits like -- ♪ outstanding. de la soul, those conscious lyrics, sampled beats. this was huge back in 1989. 11 years since they have put out a full-length album. of course, technology and the music industry is changing dramatically, especially hip-hop. the soul of hip-hop is not just the beats but the sampling. who owns those? who knows? de la soul has raised money on
kick started to fund a recording. we are joined by two of the band members. thanks for joining me. who owns the samples to those great tommy boy records? >> man, a lot of hands in it. >> a lot of hands in the pot. >> original publishers, artists, musicians, as well as the labels. and partly de la soul. we own a little bit of it. cory: i think people -- it is hard to imagine the early days of hip-hop, even before you guys when people would just hear a beat and they would put some music on top of that. it might be james brown or something they heard in a commercial. the licensing sort of stuck up on them. one was the process that of sampling, finding things to put behind your music? >> like you said, making music was based off of -- in early
hip-hop, you rhymed over beats that were being cut by the dj. sampling was just moving the dj out of the way and looping continuously. we were experimenting with james brown's and any other record that normally we would ride over from a hip-hop perspective. we did not think about the fact of who you had to pay for writing or publishing and we learned. we definitely learned quickly. cory: what was it like at tommy boy? wonder a notion of let's make the music first, we will figure out who we have to pay later? >> pretty much that was it. the creative aspect was the most important, getting into the studio and putting out records and creating a song out of your favorite stuffed. the good sound was first and foremost.
then the business time came where we all sat down and looked at the list of the different individuals we sampled from and figured out if it would be difficult clearing this one, if it would be hard to find his publisher. really trying to get clearance on every song. it was a process, but the creative aspect definitely came first. cory: that was back in the day. now we look at the business, you want to get your music played on different services, beats audio, pandora, spotify. what happens to the licensing of that music since the origins of some of those tracks are unknown? >> unfortunately, a lot of the earlier stuff we did on tommy boy, from what we are to understand, a lot of the legal language that needed to be a part of the contract between ourselves the owners of the master, and the publishing, i
guess it did not include the world of digital. so it was specifically to final -- vinyl, cassette, cds. it is taking a lot of time to reach out to these different people. >> just reworking the contracts to make that language exist for the benefit of those individuals involved. it is a process. it is a long process to make that happen. that is why our stuff is pretty much unavailable in the digital world. cory: so you are getting around those worlds by giving it away? >> yes, of course, we do not want to break any rules but the fans are screaming. the fans want the music. they enjoy the music. at the end of the day, you want the fans to be able to enjoy the music. or you do what we are doing now
via this kickstarter campaign. cory: this new music, do you see yourself getting paid for that music, do you see it supporting touring and live events, where some artists make more money? >> that is one of the options for us that has worked. we have been able to tour for the last 20 years without having new music out. the idea of stacking profit or anything, a reward of what you have done via publishing or anything like that, that is not available to us really. cory: hopefully this new one will change a little bit of that. what a pleasure to have you on and so much fun to listen to your music again. de la soul thank you very much. let's go from innovation in music to robots. to get robots and people that
make robots. we need people to build those robots. even the u.s. bureau of labor statistics says that that but we do not have the people right now. the solution may not come from humans. companies like irobot are getting kids excited about robots, cans, workshops. it is national robotics week. the irobot ceo is with us now. colin angle, thanks for joining us. what are you trying to do with national focus on robots this week? >> very few things in the world get kids excited about science and technology engineering, and math, like robots. national robot week is in its sixth year and it was envisioned and created to try to encourage events around the nation and it is happening in every 50 states
to engage kids with robots, to excite them. it runs from april 4 through april 12. you can go to national robot week online to find an event near you. through exposure through hands-on working with robots the goal is to ignite passion. cory: i have to say, it is such cool stuff, and i can see how it gets everyone inspired. but no one has more experience of what actually works in terms of selling robot than you. i have a roomba by running around my apartment at this very moment. in this business, your home robotics business has grown more slowly lately. i wonder what that means for what the ultimate future of useful robots in the home is, it even irobot is seeing slowing growth? colin: at this point in time,
upright reckoning is dead. -- vacuuming is dead. the future is some kind of hand vacuum or roomba. we are continuing to see strong growth on a global basis. some regions in the world where we have seen some slowdown in the growth but still very strong growth. these are areas where currency fluctuations have caused some issues, but in areas where that is not the case, we have seen a continued acceleration of the adoption. there are some macro economics at work on a global basis, but in north america for example china, we continue to see very strong performance. i think we are still actually at very early days as far as the acceleration of robot vacuum cleaning. of course, that is not the robot industry, just the first foot in
the door. cory: you inspire these kids and want them to think about all these things possible, and i feel like you guys try to find some stuff in the remote present business. you said that that may be material this year, but maybe moving from one thing to the next. do we really know what the use of robots will be next, if not remote presence, if it will be lawnmowers next? colin: certainly, there is a lot of explanation going on. remote presence, for example, is so new. trying to figure out all the technical challenges to get the adoption where it needs to be needs to be worked out. we had a delay last year with some technical issues but it is still very bullish on the future because it fundamentally changes what it means to be somewhere. we have to remember, we are still at the early days even
though the idea of robots have been around for decades. early days as far as what are the true applications. vacuuming, absolutely. 20% of all money spent on vacuums today is continuing to grow. cory: thank you so much. colin angle, great things for the kids. we are stoked about s.t.e.m. we appreciate your time. now it is time for the bwest byte to david kirkpatrick is here to talk about what? >> one point 5 billion. that is the amount linkedin has paid for a company called lynda.com which is an education and training site that sells subscriptions to skill building videos and career training videos, which is a big deal for linkedin. they are basically trying to turn itself into a content
mark: from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line" the intersection of business and economics with a main street restrictive. -- perspective. to our viewers here in the u.s. and to those of you around the world, welcome. we have full coverage of the stocks and stories making headlines today. education reporter janet lohr looks at the rejection rate or admissions to ivy league schools . agriculture reporter alan bjerga detailed the latest crop report and the continuing doubt it